Copper, the new gold

Durability, conductivity and corrosion resistance make the reddish metal an indispensable component in electrical systems, renewable energy technologies and electromobility. The growing areas of data centers and artificial intelligence will also further boost demand for copper. As a very large copper consumer, China is an important player. If economic measures to stimulate growth in China take effect, this should also boost copper demand and bring copper out of the shadow of gold. In any case, copper demand is following the development of the automotive market.  According to forecasts, the proportion of electric and plug-in hybrid cars is set to rise to 72%.

An electric car contains three to four times as much copper as a conventional vehicle. The lithium-ion battery already consists of around 18 percent copper. And new components such as electric motors and drive energy storage systems require additional copper. While around 19.2 million tons of copper were in demand worldwide 15 years ago, this figure had already risen to around 27.15 million tons by 2024. On the supply side, declining ore qualities and political uncertainties in major producing countries such as Peru and Chile are causing a shortage. This is why copper is also referred to as the new gold or the new oil. This may result in lucrative investment opportunities in connection with this key raw material in the future.

Uncertainties such as tariffs and dependence on imports have already led to increased deliveries to the USA. Although the price of copper has recently fallen due to the announcement of tariffs and the associated economic concerns, just like other industrial metals, copper is (still) on the list of exceptions. It remains to be seen whether tariffs will still be imposed on the metal. If China were to produce less copper due to the tariffs already in place, this would in turn be good for the price trend and therefore also for companies such as Mogotes Metals or Meridian Mining.

Mogotes Metals – https://www.commodity-tv.com/ondemand/companies/profil/mogotes-metals-inc/ – has projects in Chile and Argentina in the promising Vicuña district. The Filo Sur copper project (Argentina) is particularly noteworthy.

Meridian Mining – https://www.commodity-tv.com/ondemand/companies/profil/meridian-mining-uk-societas/ – has copper, zinc, gold and silver in Brazil. The Cabaçal open-cast mining project has a very good preliminary economic assessment, excellent infrastructure and a clean power supply.

Current company information and press releases from Meridian Mining (- https://www.resource-capital.ch/en/companies/meridian-mining-uk-societas/ -) and Mogotes Metals (- https://www.resource-capital.ch/en/companies/mogotes-metals-inc/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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